Parliamentary scrutiny needed on Levy Control Framework

17 February 2014

The Committee today publishes a short report calling for greater parliamentary scrutiny of the Levy Control Framework (LCF), which caps the cost of the energy and climate change schemes that consumers pay for through their energy bills.

Since the LCF was established in 2011-12, the Department of Energy and Climate Change has not been able routinely to report levy-funded spending in its Annual Report and Accounts because of inconsistencies with the International Financial Reporting Standards framework. Alternative options for reporting levy-funded spending to Parliament are now being considered by the Government.

The LCF annual limit is due to increase significantly from £3.184 billion in 2013-14 to £7.6 billion by 2020-21. The Committee points out that the funds raised and spent via the LCF will soon surpass DECC’s departmental budget and argues that there must be transparent arrangements to ensure that Parliament has adequate oversight of how these funds are raised and spent, particularly in the light of public concern over the cost of energy bills.